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Problem 9-1A Real estate costs LO1 On March 31, 2020, Capital Investment Advisers paid $4,670,000 for land with two buildings on it The plan was to demolish Build and build a new store (Building 3) In its place. Building 2 was to be used as a company office and was appraised at a value of $1,498,560. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $608,790. Without considerie the buildings or improvements, the tract of land was estimated to have a value of $2.575.650. Capital incurred the following additi costs: Cost to denolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) $ 733,160 277,020 2,486, 000 256,600 Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Land Land Improvements 1 Improvements 2 Land Building 2 Building 3 Purchase price 2,575,650

Problem 9-1A Real estate costs LO1 On March 31, 2020, Capital Investment Advisers paid $4,670,000 for land with two buildings on it The plan was to demolish Build and build a new store (Building 3) In its place. Building 2 was to be used as a company office and was appraised at a value of $1,498,560. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $608,790. Without considerie the buildings or improvements, the tract of land was estimated to have a value of $2.575.650. Capital incurred the following additi costs: Cost to denolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) $ 733,160 277,020 2,486, 000 256,600 Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Land Land Improvements 1 Improvements 2 Land Building 2 Building 3 Purchase price 2,575,650

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 11P
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Problem 9-1A Real estate costs LO1 On March 31, 2020, Capital Investment Advisers paid $4,670,000 for land with two buildings on it. The plan was to demolish Bullding 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,498,560. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $608,790. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,575.650. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) $ 733,160 277,020 2,486, 000 256,600 Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Land Improvements 1 Improvements 2 Land Land Building 2 Building 3 Purchase price 2,575,650 Demolition Landscaping 733, 160 277,020
Transcribed Image Text:Problem 9-1A Real estate costs LO1 On March 31, 2020, Capital Investment Advisers paid $4,670,000 for land with two buildings on it. The plan was to demolish Bullding 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,498,560. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $608,790. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,575.650. Capital incurred the following additional costs: Cost to demolish Building 1 Cost of additional landscaping Cost to construct new building (Building 3) Cost of new land improvements near Building 2 (Land Improvements 2) $ 733,160 277,020 2,486, 000 256,600 Required: 1. Allocate the costs incurred by Capital to the appropriate columns and total each column. Land Improvements 1 Improvements 2 Land Land Building 2 Building 3 Purchase price 2,575,650 Demolition Landscaping 733, 160 277,020
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